Anton Affentranger, CEO
Beat Fellmann, CFO
Conference call for media
Dietlikon, 22 December 2014
Implenia and Bilfinger Construction
Strong together in the
European infrastructure market
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Agenda
Strong together in the European infrastructure market
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Transaction Highlights
Agenda
Themes
Introducing Bilfinger Construction
Business rationale
Next steps
Implenia – who we are
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Implenia
Who we are
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Implenia…
…is a young company with more than 150 years of experience
1872
Conradin Zschokke founds “Castor,
Hersent et Zschokke”
1997
Merger of Preiswerk,
Stuag and Schmalz to
form Batigroup, number 2
in the Swiss market
1977 -
1998
Zschokke grows to be Switzerland’s
largest construction company
2006
Zschokke and Batigroup merge
to form Implenia
2011
1st Sustainability Report 2010
Acquisition of Sulzer
Immobilien AG
2011
Entry into Norwegian market
with acquisition of
Betonmast Anlegg AS
2012
Acquisition of Locher
Bauunternehmer AG
1862
Hermann Preiswerk
founds Preiswerk
2013
Implenia achieves target
EBIT of CHF 100 million
for the first time
2013
Daring to Shape
the Future
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45%
55%
Private
Öffentliche Hand
4%
Abroad Domestic
14%
…is the Swiss market leader
Implenia…
Strong market position in Switzerland
Market leader
~10% share of infrastructure construction market
~15-20% share of GC/TC work
One of Switzerland's leading real estate project
developers
Transparent
Only listed Swiss construction company in
Switzerland (IFRS)
Geographical breakdown of revenue
2013 2009
International Switzerland
Breakdown of revenue by client
Private
Public
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…has a clear-cut vision
Implenia…
Vision
We develop and build the
Switzerland of tomorrow
We establish ourselves as an
expert for complex international
infrastructure projects
Sustainability is our passion
We are the partner of choice for
customers and employees alike
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... lives up to its values
Implenia…
Values
We are reliable
We support and promote sustainability
We have integrity
We are alert to opportunities and risks
We are transparent
We demand operational and financial
excellence of ourselves
Our actions are focused on solutions and on
our customers
We are innovative
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Implenia…
…has a clear sector and regional organization
"One company, one goal, one spirit"
Modernisation Development Buildings Tunnelling & CE Construction
Switzerland
Norge
Consulting
TC/GC
Execution
Wood constr.
Engineering
Real estate
project
development
TC/GC
Complex
building
construction
Underground
construction
Civil engineering
Special
Foundations
Refurbishment
Civil works
Road building
Regional
building
construction
Plants
Underground
construction
Civil engineering
Specialities
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…focuses on sustainability
Implenia…
- Customer relations
- Products and services
- Supplier relations
Sustainable
products and
services
- Energy and resource
efficiency
Respect for
the environment
- Code of Conduct
- Stakeholder dialogue
- Communication
- Sponsorship
Social
commitment and
compliance
- Training and
development
- Talent management
- Health and safety
Attractive working
environment
- Improve results / create
value
- Risk management
Financial
excellence
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Implenia…
...has a good financial track record and creates value
in CHF m
17
39
59 68
78
94
110 116
54 85 99 105 113 141 154 158
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Operating Income EBITDA
New Mid-Term Target (EBIT CHF 140-150 mn) Merger Target (EBITDA CHF 100 mn)
Second Mid-Term Target (EBIT CHF 100 mn)
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Strong together in the European infrastructure market
Transaction Highlights
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Topics
Transaction Highlights
Acquisition of Bilfinger Construction
Structure
100% acquisition of Bilfinger Construction
Full integration
Bilfinger Construction – a sector and area business
"One brand" strategy
Value & financing
Purchase price based on business plan
Cash payment
Additionally required guarantee lines secured
Prospects
Growth of infrastructure market in Europe
Leading infrastructure specialist in Europe
Strategic and operational synergies
Positive contribution to profits
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We develop and build the Switzerland of tomorrow.
We establish ourselves as an expert for complex infrastructure projects.
Sustainability is our passion.
We are the partner for customers and employees alike.
Transaction Highlights
A forward-looking step
Established as infrastructure experts
Expert & Premium Builderr
Expert
Generalist
Discounter Premium
Infrastructure
Specialist
Selective geographic expansion
Core markets
German-speaking markets
Scandinavian markets
Export markets
Neighbouring European countries
Our vision
Strategic focus
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Systematic expansion of international infrastructure business
Transaction Highlights
2011
Acquisition of
Betonmast Anlegg AS,
Norway
2013
Establishment of
Implenia Salzburg,
Austria
2014
Acquisition of
Bilfinger Construction,
Germany
2006
Merger of Zschokke and
Batigroup to form Implenia
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Introducing Bilfinger Construction
Strong together in the European infrastructure market
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Introducing Bilfinger Construction
Leading infrastructure specialist in Western Europe
Civil Engineering
Regional & Technical
Main locations
Bilfinger Construction's core markets
Production output by segment
70%
30%
Civil Engineering Regional & Technical
Bilfinger Construction
Civil Engineering Regional & Technical
Production output:
EUR ~ 450 million
Employees: ~ 1050
Production output:
EUR ~ 200 million
Employees: ~ 800
Services:
Tunnelling
(*TBM, D&B)
Special Foundations
(excavations, supports,
deep foundations)
Civil engineering
(bridges, power stations,
metros, sound insulation)
Maintenance
(tunnels, bridges, parking
garages, buildings, etc.)
Regional services:
Civil works and road
building
Civil engineering
Turnkey construction
Technical services:
Formwork construction
Post tensioning
Refurbishment and
maintenance of
infrastructure facilities
Core markets:
- Germany
- Norway, Sweden
Core markets:
- Southern Germany, Austria
- Technologies: worldwide
Basis: 2013A *) TBM=tunnel boring machines, D&B=Drill & Blast
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Introducing Bilfinger Construction
Sector and regional business with attractive project portfolio
Sector business
Excellent sector expertise in infrastructure construction
Leading player in special foundations, civil engineering
and tunnelling
Target markets: Germany, Austria, Norway and
Sweden
High degree of technical expertise
Attractive project portfolio
Area business
Strong local presence thanks to regional and technical
companies
Specialist services in the civil works, roadbuilding, civil
engineering, formwork, regional building construction
and other sectors
Core markets are Germany and Austria
U5 (Metro)
Berlin
Key mobility and energy projects
City Line
Stockholm
Ship lift Niederfinow
Wehrhahn Line,
Düsseldorf
Vasatunnel
Stockholm Major power station
Mannheim
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Business rationale
Strong together in the European infrastructure market
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Switzerland 4%
Norway 4%
Austria 2%
Sweden 4%
Germany 17%
France 16% Italy 12%
UK 11%
Spain 5%
Rest Western Europe 16%
Eastern Europe 8%
Business rationale
Market recovery and tripling of targetable market
Source: Euroconstruct December 2014
Based on infrastructure investment in Europe 2014
Recovery of European infrastructure market 2014 infrastructure investments (in EUR bn)
Implenia is tripling size of directly targetable market in
Europe
250
260
270
280
290
300
310
320
330
2011 2012 2013 2014 2015 2016 2017
Europa (EC-19) Westeuropa (EC-15)
Original market Additional market
31%
Europe (EC-19) Western Europe (EC-15)
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Austria
Belgium
Denmark Finland
France Germany
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
UK
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
Business rationale
Successfully positioned in Europe's most attractive markets
Source: www.standardandpoors.com, Euroconstruct December 2014
GD
P C
AG
R 2
014-
17
Infrastructure volumes CAGR 2014-17
GDP and infrastructure growth, size of market (CAGR 2014-17; in EUR bn)
AAA
AA
A
BBB
BB
B
Credit Rating
Standard&Poors
EUR 50 bn
12
11
11
7
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Business rationale
Growing markets and significant investment programmes
Solid growth in targeted markets Market growth Output (indexed 2011)
Transport infrastructure investment as stable backbone Market growth Output Implenia markets (indexed 2011)
Source: Euroconstruct December 2014
Switzerland
Rail infrastructure funding (FABI) 2016-2025
Main Roads and Conurbation Transport Fund (NAF)
approved by Federal Council
Exit from nuclear by 2034
Norway
National Transport Plan 2014-23 (EUR ~55 bn)
Austria
"Zielnetz 2025+" rail project needs major investment
Completion of Brenner base tunnel: targeted for 2025
Germany
EUR 120 billion investment backlog
Car tolls from 2016 for road network expansion
Exit from nuclear planned by 2022
EU 2020 energy transition requires investment
Sweden
EUR 35 billion investment backlog
National Transport Plan 2014-25 (EUR 68 bn)
Infrastructure megatrend gaining in importance
90
100
110
120
2011 2012 2013 2014 2015 2016 2017
Road Railways Transport Others
Energy+Water Others
100.0 99.5 99.6 102.7 105.1 106.2 106.9
88.4 83.6 83.2 84.1 86.1 88.4
60.0
80.0
100.0
120.0
2011 2012 2013 2014 2015 2016 2017
Implenia markets "new" Rest Western Europe
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Business rationale
Complementary geographical expansion in attractive markets
Bilfinger Construction
Implenia Tunnelling & Civil Engineering,
Implenia Norge
Core market Expansion market
Core market Expansion market
Core market
Implenia "New"
+
Top customers
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Business rationale
Expansion and diversification of international business
Perfect geographic fit
Better portfolio risk diversification
Reduction of Swiss exposure
Breakdown of Group production output 2013A Breakdown of production output Tunnelling & Civil Engineering and Norge 2013A
Wide regional diversification
International 12%
Switzerland 88%
International 29%
Switzerland 71%
ex-ante
ex-post
57%
28%
41%
22%
1%
8%
1%
28%
4%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
T&CE, Norge (ex ante) T&CE, Norge (ex post)
Others
Austria
Germany
Sweden
Norway
Switzerland
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Business rationale
Significant strengthening of technical expertise
Technical platform – USP Experience
Project engineering Comprehensive implementation from planning to execution
Special technical solutions
Choice of different in-house contractual models
(e.g. EPC – Engineering-Procurement-Construction)
Logistics platform Inventory management/workshops
Strong technical machinery department
Pioneer in foundation engineering and complex civil engineering New leading provider in Germany and Switzerland
Strong reference portfolio
Technical specialities Materials lab
Formworks
Post tensioning
Infrastructure repairs
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Business rationale
We invest in skills
Strong workforce
Great (number) and wide (complexity) project
experience
Highly qualified employees ensure solid engineering
know-how
High level of loyalty – average of 15 years' service
High mobility ("Expat Centre" and around 100
transfers per year)
“White Collar”
59%
“Blue Collar” 36%
Management 5%
High level of engineering competence
approx. 1900 employees
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Business rationale
Shared culture for more than 15 years
Key projects already executed together
NEAT Tunnel, Sedrun
DML Weinberg Tunnel
DML escape and rescue shafts
Kirchenwald Tunnel, Hergiswil
2002-2014
2007-2014
Exploratory shaft, Lungern
2008-2009
2000-2008
2000-2003
Engineering and service competence
Quality
Precision
Reliability
Commitment
Open and transparent
References
Many years of experience in project business
Union between Germany's and Switzerland's leading
providers
Core business
Bilfinger Construction is going back to its roots with
Implenia
Cultural fit between two partners with excellent
reputations
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Business rationale
Strong basis for a successful future in the European
infrastructure market
Summary
International reach and critical mass
Competitive advantage in European infrastructure market thanks to
strong technical platform
Investment in skills with a high cultural fit
«Pole Position» to exploit the infrastructure megatrend
Positioning in healthy, growing markets in Europe
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Next steps
Strong together in the European infrastructure market
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Next steps
Transaction to be completed end-Q1
Signing and announcement of transaction 22 December 2014
Information for analysts and media 22 December 2014
Closing of transaction February/March 2015
Publication of Implenia annual results for 2014 24 February 2015
Implenia 2015 AGM 24 March 2015
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Disclaimer
Cautionary note regarding forward-looking statements
THESE MATERIALS DO NOT CONSTITUTE OR FORM PART OF ANY OFFER TO SELL OR ISSUE, OR ANY
SOLICITATION OR INVITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES, NOR
SHALL PART, OR ALL, OF THESE MATERIALS OR THEIR DISTRIBUTION FORM THE BASIS OF, OR BE RELIED ON
IN CONNECTION WITH, ANY CONTRACT OR INVESTMENT DECISION IN RELATION TO ANY SECURITIES.
THESE MATERIALS ARE BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND ARE STRICTLY
CONFIDENTIAL AND MUST NOT BE REPRODUCED, DISCLOSED OR FURTHER DISTRIBUTED TO ANY OTHER
PERSON, OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.
THE MATERIALS MIGHT CONTAIN FORWARD-LOOKING STATEMENTS BASED ON THE CURRENTLY HELD
BELIEFS AND ASSUMPTIONS OF THE MANAGEMENT OF IMPLENIA AG (THE "COMPANY", AND TOGETHER WITH
ITS SUBSIDIARIES, THE "GROUP"), WHICH ARE EXPRESSED IN GOOD FAITH AND, IN THE MANAGEMENT’S OWN
OPINION, REASONABLE. FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS, WHICH MAY CAUSE THE ACTUAL RESULTS, FINANCIAL CONDITION,
PERFORMANCE, OR ACHIEVEMENTS OF THE GROUP, OR INDUSTRY RESULTS, TO DIFFER MATERIALLY FROM
THE RESULTS, FINANCIAL CONDITION, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS. GIVEN THESE RISKS, UNCERTAINTIES AND OTHER FACTORS, RECIPIENTS
OF THIS DOCUMENT ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING
STATEMENTS. THE GROUP DISCLAIMS ANY OBLIGATION TO UPDATE THESE FORWARD-LOOKING STATEMENTS
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PRESENTED HEREIN ARE BASED ON GENERAL INFORMATION GATHERED AT THE TIME OF WRITING.
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